After adjusting refunds, net GST mop-up was up 7.3% to about ₹2.11 lakh crore.
| Photo Credit: Getty Images/iStockphoto

Amidst the GST led momentum and quarterly earnings season, the focus on January Auto sales gets diverted, but automakers are expected to report a strong show. While GST rate cuts was a key trigger for buyers who have been on the sidelines for a while now, we now understand this is a structural change and dealer channel check suggest the same.

Brokerages also have put strong estimates for the month of January and suggest multiple winners this time around as well, a trend we have seen in the past couple of months as well. Among some key winners and gainers, Tata Motors, TVS, Ashok Leyland will be some you have to watch out for.

Two Wheelers: Affordability And Premiumization Trends Further Underpin Demand

Two wheeler demand especially for the entry level segment was on the sidelines pre GST Rate cuts led by cost increases over last few years. Growth trend has been quite strong in January with Hero being a key beneficiary. Trend seems structural and positive for the industry. Premiumization across category has been visible but not as stark as within two wheelers where beneficiaries have been across players.

TVS being the most diverisified player across motorcycles and scooters is expected to show a 26% year-on-year growth followed by Eicher Motors. According to brokerage firm Nuvama, exports would increase in double digits led by growth in Asia, Africa and Latin America, a trend benefitting Royal Enfield maker Eicher Motors, Bajaj and TVS.

PV: New Model Launches Take Centre Stage

After almost a year of no new model launches from end of 2024 till August 2025, carmakers have had their say in the last few months. Tata Sierra, Mahindra 9S & XUV 7XO, New Renault Duster, Hyundai Venue, Maruti Victoris have shown as bright as the Diwali lights and captured both buyer interest and healthy booking numbers.

Sierra push is expected to help Tata Motors outperform peers with 27% year on year growth, others are expected to show growth as well.

CV: Early Stages Of The Start Of An Upcycle

While there aren’t any signs of a upcycle starting already in truck sales, the numbers would show you otherwise, especially in the last quarter. While there hasn’t been a big capex push from the government which is a key indicator for increase in truck sales, monthly numbers seem to suggest GST benefit has helped truck sales as well, especially for Light Commercial Vehicles. This has helped stock prices of Ashok Leyland and Tata Motors Ltd, with 39% and 40% up respectively.

Once there is an indication and quarterly earnings conference calls will help with those, you could see the MHCV or Medium And Heavy Commercial Vehicles sales pick up meaningfully as well for truck makers. Expect a 20% growth for January across players.

Tractors: GST Cuts, Progress Tnto Rabi Season To Continue Growth Momentum

Tractor makers had their say in 2025 crossing the 1 million sale mark for the first time in a year and 2026 is expected to be a strong start yet again. Momentum is expected to continue with 15-20% YoY growth for Escorts and Mahindra.

Brokerage firm Nomura suggests that tractor demand sentiment continues to be strong, supported by GST cuts and demand will remain healthy for the rest of the year as we progress into the rabi season, supported by improved reservoir levels, and better farm cash flow.

ALSO READ: Tata Motors, Hyundai And Other Auto Stocks In Focus As India Mulls Tariff Cut For EU Carmakers

Gross Goods and Services Tax mop-up was ₹1.73 lakh crore in September 2024. Last month, the collection was ₹1.86 lakh crore, as per government data released. File.
| Photo Credit: Reuters

Finance Minister Nirmala Sitharaman. File.
| Photo Credit: Bijoy Ghosh

At the 56th meeting of GST Council meeting, the current four-tier structure has been replaced with a two-tier one, with a standard rate of 18% and five per cent, and de-merit rate of 40% on selected few goods and services.
| Photo Credit: Getty Images

Representative image
| Photo Credit: Reuters

Jaisalmer (Rajasthan):

Union Finance Minister Nirmala Sitharaman on Saturday announced that the Goods and Services Tax Council has approved the reduction of GST on rice kernels to 5 per cent, exempted life-saving gene therapy from tax, and extended the GST exemption for parts used in manufacturing surface-to-air missiles (SAM).

Addressing the media here after the 55th GST Council meeting, the Finance Minister said the decision to cut GST on rice kernels from 18 per cent to 5 per cent has been taken as the commodity is supplied to the weaker sections of society through the public distribution system.

“Similarly, the concessional 5 per cent GST is applicable on inputs of food preparations that are supplied for free distribution to economically weaker sections under government programs subject to existing conditions; so this is also an extension of the 5 per cent rate that prevails,” she said.

Explaining the rationale for increasing the tax on caramelised popcorn to 18 per cent, the Finance Minister said that these included added sugar which constituted a separate category just like carbonated drinks that are harmful to health and hence, are put under a higher tax slab.

She pointed out that salted and plain popcorn were also being sold in the market and the GST on them had not been increased.

She further stated that black pepper, whether fresh green or black pepper or dried black pepper, and raisins, when supplied by an agriculturist, are not liable to GST. However, if these commodities are sold by merchants, then they would be liable to pay tax.

She also said that all parts used for the manufacture of SAM missiles including software will continue to be exempt from GST.

The Finance Minister also said that while payment aggregators handling transactions below Rs 2,000 are eligible for exemptions, this does not apply to payment gateways and fintech services.

She said that no GST is payable on penal charges or levies collected by banks and NBFCs for non-compliance with loan terms by borrowers. This step would go a long way to help small businesses.

The Finance Minister further stated that the issue of whether there should be a separate GST on delivery charges of food provided by quick commerce companies and e-commerce apps was discussed at the meeting but no decision has been taken in the matter. It was felt by the Council that more detailed discussions were required on the issue, she added.

The Finance Minister also said that ACC blocks containing more than 50 per cent fly ash will attract 12 per cent GST.

Ms Sitharaman disclosed that no decision has been made regarding the inclusion of Aviation Turbine Fuel (ATF) under the GST framework as several states were opposed to the move. Further discussions are expected on the issue in future meetings.

She further stated that the GoM on health insurance has not received inputs from the insurance regulator IRDAI as yet so more time is required to take a decision on the issue.

The GoM on rate rationalisation also needs additional time as the report is yet to be finalised, she added.

The Finance Minister further said that the Council discussed whether the GST on floor space index (FSI) for construction should be on the reverse charge or forward charge. No decision was taken on the issue as it has implications for the revenue of municipalities and besides, land is a state subject.

She also disclosed that a concept note has been given in-principle approval by the GST Council to bring amendments in GST to make registration easier for small companies who avail low input tax credit. These companies are facing problems in registrations and it has been decided to simplify the system to make the process smoother for them.

The Council has approved an amendment to the definition of prepackaged and labelled items intended for retail sale. The step is aimed at clarifying the definition for all goods as currently there is a lot of confusion on the issue, Ms Sitharaman added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Mumbai:

Introduction of the Goods and Services Tax (GST) in India was a “classical example of cooperative federalism,” Chief Justice of India D Y Chandrachud said on Saturday.

The courts have, over the last few decades, evolved a robust framework on federalism to ensure that the states’ rights are protected, he said, speaking on `Understanding Federalism and Its Potential” at the inaugural annual lecture series organized by the Marathi daily `Loksatta’. Federalism, for Indians, is not a “monolithic concept” but has multiple facets, the CJI said.

Cooperative federalism is a system of governance where the Centre and the states work together to “iron out differences to achieve the common goal of development,” he said.

The dialogue between the Union government and the states must be placed on “two ends of the spectrum,” Chandrachud said, adding that at one end are collaborative discussions that cooperative federalism fosters, while “interstitial contestation” between the states and the Union are at the other end.

“Both forms of dialogue are equally important for federalism and for our nation to flourish, and what better example (one can think of) than the introduction of the GST,” the CJI added.

Post 1990, when the Indian economy underwent market reforms, the economy has come to occupy the centrestage of the political discourse, he said.

“The amendment in the Constitution to reflect and embody the GST, is to my mind a classical example of collaborative, cooperative federalism,” Chief Justice Chandrachud added.

The courts have played an important role in developing the principles of Indian federalism, said the chief justice.

“The courts have been at the forefront of this development, bringing out the nuances of the doctrine to protect the interests of the states in terms of identity and efficiency,” he said.

Further, in the last few decades, “the courts evolved a robust jurisprudential framework on federalism to ensure that the state’s rights are protected, identity of various communities is fostered and the value of representation is promoted,” he noted.

The federal nature of our Constitution has undergone a change by the actual operation of the democracy, Chef Justice Chandrachud said.

“The concept of federalism that was envisaged by our founding fathers and mothers has not remained static, it’s a concept which has evolved keeping in view the realities of the evolution, the maturity and strength of our political system to incorporate more autonomy for the state,” he added.

The Indian Constitution was meant to be a “transformative document”, the CJI said, while also noting that issues like climate change, AI, data privacy and cyber crime transcend the territorial boundaries which form the basis of federal units.

“These new challenges ill-fit the conventional modes of union and state subjects…..some Indian states are severely impacted by the perils of climate change, while some may be more prone to cyber attacks due to the greater volume of virtual transactions,” he said.

If federalism in the years gone by was adjusting to the political realities of the country in terms of legislative powers, in the years to come it should also be evaluated based on its ability to foster democracy and constitutional ideals of equality, liberty, dignity and fraternity, Chief Justice Chandrachud added.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Pune:

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Friday called to build consensus over bringing petrol, diesel under the Goods and Services Tax.

While delivering a lecture on “Strategy and Measures for Enhancing India’s Energy Security in the Coming Decade” at the Pune International Centre’s (PIC) 14th Foundation Day lecture, he said, “I have heard a suggestion to bring petrol and diesel under GST, now petrol and diesel under GST is something that I have been advocating for a long period of time. Now I am very sure that my senior colleague, the finance minister, has also spoken about bringing fuel under GST on several occasions.”

To enhance its energy security, India needs to focus on strategic petroleum reserves and prioritise exploration and production to reduce its heavy reliance on imported fuel.

Mr Puri highlighted that with a population of 1.4 billion and energy consumption projected to be three times the global average, India is positioned to be a key player in the global energy landscape. Over the next two decades, he noted, India is expected to contribute to 25 percent of the world’s increase in energy consumption.

Mr Puri emphasised that achieving this requires unanimous approval from all states and acknowledges the challenges in getting states on board, as petrol and diesel are significant revenue generators for them.

In fact, he pointed out that states are unlikely to agree to this move, as liquor and energy are major revenue sources.

To make this happen, the states need to initiate the process, and the central government is ready to cooperate. Mr Puri highlighted that the Kerala High Court had suggested discussing this issue in the GST Council, but the finance minister of Kerala didn’t agree.

He said that non-BJP states are not willing to forego the additional VAT.

“The Kerala High Court, if I remember last year, had suggested that the GST council should take this up as in its agenda, and my recollection is that in a meeting in Allahabad, it came up in the meeting also , but as you know, the GST council works on the principle of consensus and unanimity and the state chief ministers have to agree. We are currently in the situation that BJP-ruled states have reduced their VAT, and non-BJP states are not even willing to forego the additional VAT, so I do not see that it is happening,” he added.

Reflecting on India’s long history in oil exploration, dating back to the discovery of crude oil in Digboi, Assam, in the 1880s, he said the government’s clearance for the exploitation of one million square kilometres of sedimentary basin sends a positive signal to investors.

He identified three primary challenges to energy security: availability, affordability, and the transition to renewable energy sources. Union Minister also mentioned that while green hydrogen represents the fuel of the future, its success depends on local demand and production, and that technological advancements could help overcome associated cost challenges.

On global oil markets, he noted that there is no shortage of oil globally, but rising geopolitical tensions could lead to increased oil prices. He added that traditional oil cartels will have less influence as new energy sources emerge.

In his closing remarks, Dr Raghunath Mashelkar, President, PIC, reiterated the importance of reducing India’s fuel import bill and advancing renewable energy initiatives.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A video of Finance Minister Nirmala Sitharaman’s conversation – with the owner of the popular Sree Annapoorna Hotel chain in Coimbatore – landed the BJP’s Tamil Nadu chief, K Annamalai, in a spot of bother Friday as he admitted to an “unintended breach of privacy” by sharing the clip online.

In a post on X this afternoon Mr Annamalai offered his “sincere apologies” for inadvertently sharing a video of that conversation, and said he had also spoken to the businessman, Srinivasan.

Mr Annamalai hailed Srinivasan as a “pillar of Tamil Nadu’s business community” and someone who has contributed “significantly to the state and nation’s economic growth”. “I request everyone to lay the matter to rest with due respect,” the BJP leader wrote on X.

On behalf of @BJP4TamilNadu, I sincerely apologise for the actions of our functionaries who shared a private conversation between a respected business owner and our Hon. FM.

I spoke with Thiru Srinivasan Avl, the esteemed owner of the Annapoorna chain of Restaurants, to express…

— K.Annamalai (@annamalai_k) September 13, 2024

The post follows controversy over a video that some posts claimed showed the businessman apologising to Ms Sitharaman after his remarks at a business forum in Coimbatore attended by the Finance Minister.

Srinivasan had then urged Ms Sitharaman to keep GST rates equal across three food categories – savoury and sweet food items, and coffee. He also pointed out certain items – such as a bun – does not attract any GST on its own, but an 18 per cent charge is levied if it has a cream filing.

In a comment that drew chuckles from colleagues, Srinivasan said, “The customer then says, ‘you give me the bun and the cream… I will fill it myself.’ We can’t run the shops like this…”

“We have to give coffee and snacks to the same customers… but the GST differs for each. This creates chaos and daily there are fights,” he explained, adding, on a lighter note, that even the BJP’s Coimbatore MLA, Vanathi Srinivasan (seated with the Finance Minister), had argued this point with him.

“So, if you increase the GST then increase it for everything… let it be the same for all products,” he said, as other businessmen laughed.

In the widely-shared video of the interaction at the Coimbatore business forum, Srinivasan’s humorous comment drew a smile from Ms Sitharaman, who pointed out that GST rates were not calculated on a state-by-state basis. She did, however, say she would consider the issue.

Srinivasan also said Vanathi Srinivasan told him sweets were taxed less because they were consumed more in the north than the south. “I said (to Ms Srinivasan), ‘no, in Tamil Nadu, people consume sweets, coffee, and snacks in equal amount. So please… consider that,” he urged Ms Sitharaman, adding also (to more laughter), “If a family comes then even our computer can’t calculate GST.”

Shortly after that exchange a second video surfaced online and drew criticism from the Congress. It showed Srinivasan (with his back to the camera) sitting across from Ms Sitharaman, purportedly apologise for his comment.

NDTV cannot confirm the authenticity of this video or the conversation.

Towards the end of the second video he stands up and briefly folds his hands, before sitting down and saying, “I didn’t mean to say anything against any political party. I don’t belong to any political party.”

Senior Congress leaders Mallikarjun Kharge and Rahul Gandhi have attacked the BJP on this matter.

Mr Gandhi said on X, “When the owner of a small business… asks our public servants for a simplified GST regime, his request is met with arrogance and outright disrespect.”

Tamil Nadu’s CPI has demanded Ms Sitharaman apologise, and Lok Sabha MP Kanimozhi, a member of the state’s ruling DMK, said, “Union Ministers should not provoke the self-respect of Tamils.”

With input from agencies

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